Chinese tech stocks listed in Hong Kong advanced on Friday, heading toward their best weekly winning streak since 2020, powered by earnings surprises and continued investor interest in the sector.

The Hang Seng Tech Index climbed 6% to a new three-year high, bringing the week's gain to 5.6%. That marks the sixth straight week of advances, the best winning streak since May 2020.

Hong Kong's benchmark Hang Seng Index .HSI advanced 3.7% to a three-year high.

Alibaba surged 14% to the highest level since late 2021, after the Chinese e-commerce giant reported better-than expected revenue and said it plans to invest more in e-commerce and AI.

Bilibili-W also saw a significant rise of 15%. The company reported fourth-quarter revenue of 7.73 billion yuan, a year-on-year increase of 22%, achieving a year-on-year profit. Adjusted earnings per share were $0.15, exceeding the expected $0.14, although sales of $1.06 billion fell short of the expected $1.07 billion.

HK EV stocks shined, with Li Auto up 7%, BYD up 4.5%, Xiaomi up 4.8%. JPMorgan Chase has raised its price target for BYD by more than 60 per cent, as it expects China’s leading electric vehicle (EV) maker to deliver 6.5 million units globally by 2026 on the back of its rapid global expansion and roll-out of its self-driving system.

Chinese technology shares have been on a tear in recent weeks as local AI startup DeepSeek’s breakthrough prompted investors to re-evaluate the nation’s leading internet companies. The Hang Seng Tech Index entered a bull market earlier this month on enthusiasm over DeepSeek’s AI model. More recently, President Xi Jinping’s recent meeting with Alibaba founder Jack Ma and other tech executives also spurred optimism that Beijing is taking a more conciliatory tone in fostering the sector’s development.

Alibaba’s results are partly fueling the market’s Friday rally, said Bo Pei, an equity research analyst at US Tiger Securities. Xi’s meeting with Ma is an “indicator of the government’s evolving stance toward private enterprises and capital markets. It also has implications for whether foreign long-only funds will regain confidence in Chinese equities.”

The gains add to a huge rally in Chinese tech stocks sparked by the launch of DeepSeek, a low-cost Chinese artificial intelligence model, which reignited global investors' interest in China and spurred funds to rotate into the sector with its relatively cheap valuations.

"DeepSeek has been a powerful catalyst for China and there's more to go with the valuation discount to emerging markets to narrow more," HSBC analysts said in a note, also citing the return of foreign investment inflows during the last two weeks.

The DeepSeek-triggered rally has helped add more than $1.3 trillion to China's onshore and offshore equity markets in just a month, driving investment flows away from India and into China, said James Cook, investment director of emerging markets at Federated Hermes.

"Chinese companies, including Tencent, Alibaba and Baidu are fast catching up with the global AI frenzy after missing out in the past few years," he said.